Der Spiegel magazine reported that German secret police had tapped mobile phone conversations between top negotiator Roberto Aventajado and the Abu Sayyaf group via satellite.
The German weekly quoted German police as saying that Mr. Estrada and Aventajado took 40 percent and 10 percent respectively of a $20-million ransom payment for the freedom of unnamed hostages seized by the Muslim extremist rebels earlier this year.
Mr. Estrada was "very upset" with the report and was mulling filing libel charges against the magazine, Press Secretary Ricardo Puno told reporters.
"The President was really upset by the report. He has indicated that if legal action is warranted, depending on the advise of his lawyers, he will do so," Puno said.
"The President was also categorical in vehemently denying that he has anything to do with the ransom money," he added.
Puno said "there is no truth to these such tapes. If that tape exists, Der Spiegel should produce that."
"We hope that they come out with a copy of this tape if it does exist. If not, an apology is due from Der Spiegel, which is, after all, a confessed ransom-giver itself since it admitted that they have paid ransom for the release of one of their reporters," Puno said.
Aventajado also rejected allegations and also threatened to sue the publication for libel.
Executive Secretary Ronaldo Zamora said the Philippine government had sent two police officers to Europe to help German intelligence translate the transcribed conversation.
"They brought back the transcripts and nowhere in these transcripts did these allegations come up," Zamora said in an interview with radio station dzMM.
Defense Secretary Orlando Mercado, meanwhile, said the military had not received "any intelligence report pertaining to negotiations with the Abu Sayyaf" over ransom payments.
Armed Forces chief Gen. Angelo Reyes said: "We have nothing to do with that and I’m sure all of this will be cleared."
The Abu Sayyaf abducted 21 Asian and European hostages in April from the Malaysian resort island of Sipadan. The rebels were reported to have received huge ransom payments for the release of some of the group.
More hostages were abducted later and the military launched a rescue operation in September. Seventeen other hostages including two Frenchmen and three Malaysians were rescued but the rebels still hold an American and a Filipino hostage.
Zamora said the Philippine government planned to seek clarifications with the German ambassador to Manila.
"If they really listened in on the negotiations then they should give me a medal for my effort," Aventajado told dzMM, describing the magazine’s reports as "lies."
Aventajado said he would write a book about the negotiations to dispel the allegations.
Philippine National Police chief Director General Panfilo Lacson said they had received copies of the supposed transcripts between Aventajado and Abu Sayyaf leader Galib Andang cited by Der Spiegel.
He said the document, which is in the custody of police intelligence, did not mention anything about commissions.
Puno said the timing of the release of the article was suspicious.
"It seems to us that the timing is not accidental but deliberate," he said.
Mr. Estrada went on trial for alleged corruption last Thursday. The trial in the Senate is expected to last until mid-January and could lead to his removal from office.
"We don’t know who was behind it. Obviously its intent is to embarrass the President and somehow influence the outcome of the trial," he said.
Foreign Affairs Undersecretary Franklin Ebdalin also expressed suspicions over the timing of the article.
"There could have been payoffs but the timing of the publication was suspicious. Why only now?" he said.
Ebdalin said Ambassador Jose Zaide, who is stationed in Berlin, was already ordered by the home office to verify the article.
The German Embassy in Manila, meanwhile, described the magazine’s stories as "credible and reliable."
Press attaché Ernst Schewering also said Der Spiegel "is famous and widely circulated."
However, he refused to comment on the article about the President.
In other developments yesterday, defense and military officials denied any knowledge on reports that two local banks were used as depositories of the ransom payment.
"It is a squid tactic designed to cover up the weakness of the prosecution evidence in the impeachment complaint," Lozano said in a statement.
He said it was quite understandable that the former president, being an expert on psychological warfare, would justify the German secret police’s report even though the Philippine and foreign governments have consistently denied paying any ransom.
Lozano said Andang’s wife Nariman Matlih had expressed surprise over the alleged ransom being divided by Mr. Estrada and Aventajado.
He said Matlih has always been in the jungles with Commander Robot and "did not see any delivery of ransom" to her husband.
Andang’s wife went to Manila last week to seek Lozano’s assistance for the early and safe surrender of Commander Robot. – With reports from Aurea Calica, Paolo Romero